China Report: Problems and Difficulties in the Development of China’s Green Finance

Author: Wang Gang

Inquiry Publications

With the initial progress of China’s green finance market, some lessons are emerging that are useful both for the further development of the green finance system and for other emerging market countries embarking on green finance development. Strategic political commitment has been the key driver for China’s development of green finance, but translating this into

In recent years, financial market policy-makers and regulators in China have shown leadership in advancing their roles in creating a green financial system. However, the impacts to date have been constrained by countervailing forces. In particular, the performance criteria on which local government officials are assessed still prioritizes economic growth over environmental compliance. The positive